The importance of monitoring the operational risk at the level of banking companies

Abstract

The purpose of this paper is to analyze the potential operational banking risk losses and to introduce the key operational risk indicators. We present a possible matrix of the operational risk monitoring indicators and the correlations between the main types of the operational banking risks and the measures to prevent and diminish the operational risks. The majority of operational risk events should be prevented with the adequate procedures and for this reason, operational banking risks events need to be identified and monitored. It is very important for a bank to develop loss events tracking and reporting, that represent early warning signals in the banking risks management.operational risk, monitoring indicators, banking risk management